FX headwinds cancel out HSBC’s Q3 RWAs cut

Portfolio reductions reaped $10.8 billion of RWA savings

HSBC’s efforts to lower its risk-weighted assets (RWAs)  were undercut by foreign currency effects in the third quarter. These added $14.2 billion to RWAs over the three months to end-September, almost entirely offsetting $15.1 billion of reductions achieved by shrinking its portfolio and refining its credit risk models.

As of end-September, the bank’s RWAs stood at $857 billion, virtually flat on three months prior. Excluding currency effects, though, they would have shrunk 1.4%.
A reduction

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